In the business world, commercial disputes are a frequent occurrence, and almost no company is completely spared from the risk of facing them. They usually arise from unfulfilled contractual obligations, unpaid receivables, violations of intellectual property rights, competition-related issues, or disagreements among company members. Although many businesses strive to resolve disputes amicably, in practice it often becomes necessary to initiate legal proceedings before commercial courts.
For companies, entrepreneurs, and investors, such proceedings can have far-reaching consequences—from financial losses and reputational damage to operational difficulties and loss of clients. This is why timely legal assistance and the engagement of a lawyer specialized in commercial law play a crucial role. A lawyer not only represents the client’s interests in court but also helps develop a strategy, gather evidence, and negotiate potential settlements.
Understanding the types of commercial disputes, the procedure before the court, and the alternative methods of dispute resolution is essential for any company that wants to protect its interests and ensure long-term safe and stable business operations.
What are commercial disputes?
Commercial disputes are legal proceedings that arise between business entities—companies, joint-stock companies, limited liability companies, sole proprietors, or other participants in commercial transactions. Their purpose is to resolve disagreements stemming from business relationships, contracts, and other commercial activities.
According to current legislation, these cases fall under the jurisdiction of commercial courts, which are specifically tailored to the business context and often require fast and efficient resolution.
Difference between commercial and civil disputes
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Civil disputes occur between natural persons, or between natural and legal persons, in situations not necessarily related to business—such as family disputes, property issues, or employment relations.
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Commercial disputes, on the other hand, always involve business entities and issues arising from their business activities—contracts, receivables, intellectual property, competition, or corporate relations.
In this way, commercial disputes form a distinct area of legal protection, aimed at safeguarding the security of business transactions and maintaining trust among market participants.
Types of commercial disputes
Commercial disputes may arise in various forms of business relationships, and their nature depends on the type of contract, the field of activity, and the interests of the parties involved. The most common types include:
Contractual disputes
These occur when one party fails to fulfill its contractual obligations, which may lead to contract termination, claims for damages, or demands for specific performance. They are especially frequent in construction contracts, supply agreements, and service contracts.
Debt and receivables disputes
When one party fails to settle debts on time, the creditor may initiate proceedings to collect receivables. Such disputes directly affect business liquidity and stability.
Intellectual property disputes
These relate to violations of rights to patents, trademarks, copyrights, or industrial designs. In practice, they often arise from plagiarism, unauthorized use of brands, or software solutions.
Competition and antitrust disputes
These arise when companies use unlawful business practices such as abuse of dominant market position or agreements that distort fair competition.
Corporate and shareholder disputes
These include disagreements among company members or shareholders, such as disputes over management, dividend payments, transfer of shares, or minority shareholder rights.
Bankruptcy and liquidation disputes
Disputes that occur during bankruptcy and liquidation proceedings, either between creditors and debtors or among the creditors themselves.
How are commercial disputes conducted?
The procedure for conducting commercial disputes differs from civil proceedings because it is adapted to business entities and the specifics of their relationships. The key elements of the process are:
Jurisdiction of commercial courts
Commercial courts are specialized courts entrusted with resolving disputes between legal entities and entrepreneurs. Their role is to ensure efficiency and legal certainty in business relations, which is particularly important for the economy.
Special provisions of the Civil Procedure Law
Commercial disputes are conducted under the rules of the Civil Procedure Law, but with special provisions aimed at faster decision-making, shorter deadlines, and stricter procedural requirements. This prevents delays and allows for quicker resolution of business disagreements.
Evidence – the importance of written documents
In commercial disputes, written evidence plays a decisive role. Contracts, invoices, correspondence, emails, and other business documents often form the basis on which the court makes its decision. Therefore, proper archiving and management of business documentation are crucial for success in such disputes.
Alternative dispute resolution
In addition to court proceedings, business entities also have the option of resolving disputes through alternative methods. These procedures often provide faster and more flexible outcomes, with the most common options being:
Arbitration
Arbitration is a process in which the parties agree to entrust the resolution of their dispute to an arbitral tribunal or arbitrator. Decisions made in arbitration carry the same weight as court judgments and are binding on the parties. The advantages of arbitration include flexibility, the expertise of arbitrators in specific fields, and the possibility of confidential proceedings.
Mediation
Mediation involves the intervention of a neutral third party—the mediator—who helps the parties reach an agreement. Unlike arbitration, the mediator does not issue a decision but facilitates negotiations and finding a compromise. The main benefit of mediation is that it preserves business relationships and is usually quicker and less expensive than litigation.
Advantages and disadvantages compared to court proceedings
The main advantages of alternative dispute resolution are time savings, lower costs, confidentiality, and preservation of business relationships. The drawback is that the success of these methods depends on the willingness of the parties to cooperate and compromise. If they fail, the parties must still turn to the courts, which prolongs the overall process.
The role of lawyers in commercial disputes
Hiring a lawyer in commercial disputes is often crucial to the outcome of the case. A specialized commercial law attorney not only understands legal procedures but also comprehends the business context in which the dispute arises. Their role involves several key stages:
Case analysis and strategy
At the beginning of the process, the lawyer thoroughly reviews all facts and evidence, assesses potential risks, and defines the most effective representation strategy. Timely analysis allows the client to realistically evaluate their chances and decide whether it is more cost-effective to go to court or negotiate a settlement.
Evidence collection and court representation
The lawyer assists in gathering relevant documentation—such as contracts, invoices, and business correspondence—and ensures that the evidence is properly presented before the court. During the proceedings, they represent the client’s interests, conduct hearings, and file legal motions in accordance with the law.
Negotiations and settlement opportunities
In many cases, the client’s goal is not only to win the dispute but also to reduce costs and preserve business relationships. In such situations, the lawyer takes on the role of negotiator, aiming to reach a settlement that satisfies both parties and avoids a lengthy court process.
In this way, the lawyer acts not only as a legal representative but also as a strategic advisor, helping companies find the most efficient solution for their specific situation.
Costs and duration of the proceedings
One of the key concerns for companies and entrepreneurs regarding commercial disputes is the cost and duration of the proceedings. Understanding these factors helps businesses realistically plan their resources and make informed decisions about the best way to resolve a dispute.
Typical duration of commercial disputes
The length of the proceedings depends on the complexity of the case, the amount of evidence, and the willingness of the parties to cooperate. In practice, simpler cases can be resolved within a few months, while more complex proceedings—especially those involving international elements—can last for several years. Although specific provisions of the Civil Procedure Act aim to ensure faster decision-making, in reality, the duration of the process often depends on the volume of documentation and the scheduling of hearings.
Who bears the legal costs
The costs of the proceedings include court fees, attorney’s fees, expert witness fees, and other expenses related to the dispute. Generally, the losing party is required to reimburse the legal costs of the opposing party. However, the court may decide to split the costs depending on the circumstances of the case. For this reason, it is crucial for companies to have a clear legal strategy and a realistic assessment of their chances before initiating court proceedings.
A transparent understanding of the costs and duration of legal proceedings enables businesses to decide whether it is in their best interest to go to court, negotiate a settlement, or explore alternative dispute resolution methods.
Conclusion
Commercial disputes are an inevitable part of the business environment and can significantly affect a company’s financial stability and reputation. From contractual disagreements and unpaid claims to intellectual property infringements and complex corporate issues—each dispute carries risks that require careful legal handling.
Hiring a lawyer specialized in commercial law in such situations is not a luxury but a necessity. An experienced attorney not only understands legal procedures and specific regulations but also sees the bigger business picture—how the outcome of a dispute can influence the company’s future development, relationships with partners, and market position. They provide support in case analysis, court representation, settlement negotiations, and protection of the client’s interests at every stage of the process.
For companies aiming to operate securely and sustainably, timely engagement of a commercial law expert represents an investment in stability, predictability, and the preservation of business reputation.
FAQ – Frequently Asked Questions About Commercial Disputes
What are commercial disputes?
Commercial disputes are legal proceedings between legal entities or entrepreneurs arising from business relationships, contracts, or other commercial activities. They are resolved by specialized commercial courts.
Which court has jurisdiction over commercial disputes?
Commercial disputes fall under the jurisdiction of commercial courts, with the Commercial Appellate Court acting at the second instance. In more complex cases, especially those involving international elements, multiple legal instances may be involved.
How long does a commercial court procedure take?
The duration depends on the complexity of the case and the willingness of the parties to cooperate. Simpler cases may last a few months, while more complex disputes can take years—particularly if appeals are filed or there is a large amount of evidence.
What are the most common types of commercial disputes?
The most common include contractual disputes, debt and claims disputes, intellectual property infringements, competition-related disputes, corporate and shareholder conflicts, as well as disputes arising during bankruptcy and liquidation procedures.
Can commercial disputes be resolved out of court?
Yes. Parties may use arbitration or mediation, which often leads to faster and more cost-effective resolutions. However, the success of these methods depends on the parties’ willingness and readiness to reach an agreement.
What is the role of a lawyer in commercial disputes?
A lawyer plays a key role in case analysis, evidence collection, court representation, and settlement negotiations. Their expertise ensures the best strategy and protection of the client’s interests.
Who covers the costs of a commercial dispute?
Typically, the losing party bears the costs, including court fees, attorney’s fees, and other related expenses. In some cases, the court may decide to split the costs between the parties.
Is arbitration a better option than commercial court?
Arbitration offers advantages such as faster resolution, confidentiality, and specialized arbitrators. However, it requires the consent of both parties. Commercial court remains the mandatory option when arbitration has not been agreed upon or when parties seek a fully enforceable court judgment.